MUMBAI: The stringent regulations drawn up by the central financial institution remaining week to supervise virtual fee companies have induced the trade to enroll in forces and search adjustments in a few of the prerequisites, in step with senior trade executives.
The Payments Council of India, an trade grouping, has already written to the central financial institution in the hunt for a hearing on issues they deem as "critical" to the nascent payments trade. "Some of the new norms could severely cripple the industry and make the wallet business unviable," mentioned one person cited above.
"We have already reached out to the Reserve Bank of India. We are expecting to meet senior officials in the central bank and raise our concerns regarding the stringent provisions in the prepaid instrument (PPI) licence guidelines," he mentioned.
Among the major points of concern, in step with trade participants, are the call for for a compulsory full KYC or know your-customer certification, phased advent of interoperability and restriction of peer-to-peer fund switch in semi-KYC wallets.
"We plan to aggressively push the RBI on mandatory conversion of all wallets into full-KYC ones as we believe that we cannot have all wallets under full KYC," mentioned the chief govt of some of the greatest wallet companies.
'Revised Guidelines Too Stringent'
The revised tips are more stringent than they need to be." Another primary hurdle for fee companies is prohibition of inter-wallet transactions, together with switch of funds from checking account to wallet from semi-KYC accounts, which the companies believe will ruin the relevance of cellular wallets.
"The scope of fraud is more in moving cash via debit or bank cards into wallets after which siphoning it off to other financial institution accounts. P2P fund movement isn't dangerous that way. We had made multiple representations to the RBI in this," mentioned some of the trade executives who spoke to ET Although the trade was once ready for stricter tips, the scope of the regulations introduced remaining week has dampened the outlook.
Digital wallets have in large part been viewed as a most popular mode of fund switch for small value and amongst individuals who can't simply open a checking account. The home remittance trade is based on most commonly migrant staff the use of prepaid instruments to ship cash regularly back house. "The major problem they face is of an deal with evidence as they keep travelling to different puts on the lookout for paintings.
For them, doing a full-KYC to open a virtual wallet each and every time will likely be a major hindrance for clean trade," mentioned the founder of a Mumbai-based payments company.
The Payments Council of India, an trade grouping, has already written to the central financial institution in the hunt for a hearing on issues they deem as "critical" to the nascent payments trade. "Some of the new norms could severely cripple the industry and make the wallet business unviable," mentioned one person cited above.
"We have already reached out to the Reserve Bank of India. We are expecting to meet senior officials in the central bank and raise our concerns regarding the stringent provisions in the prepaid instrument (PPI) licence guidelines," he mentioned.
Among the major points of concern, in step with trade participants, are the call for for a compulsory full KYC or know your-customer certification, phased advent of interoperability and restriction of peer-to-peer fund switch in semi-KYC wallets.
"We plan to aggressively push the RBI on mandatory conversion of all wallets into full-KYC ones as we believe that we cannot have all wallets under full KYC," mentioned the chief govt of some of the greatest wallet companies.
'Revised Guidelines Too Stringent'
The revised tips are more stringent than they need to be." Another primary hurdle for fee companies is prohibition of inter-wallet transactions, together with switch of funds from checking account to wallet from semi-KYC accounts, which the companies believe will ruin the relevance of cellular wallets.
"The scope of fraud is more in moving cash via debit or bank cards into wallets after which siphoning it off to other financial institution accounts. P2P fund movement isn't dangerous that way. We had made multiple representations to the RBI in this," mentioned some of the trade executives who spoke to ET Although the trade was once ready for stricter tips, the scope of the regulations introduced remaining week has dampened the outlook.
Digital wallets have in large part been viewed as a most popular mode of fund switch for small value and amongst individuals who can't simply open a checking account. The home remittance trade is based on most commonly migrant staff the use of prepaid instruments to ship cash regularly back house. "The major problem they face is of an deal with evidence as they keep travelling to different puts on the lookout for paintings.
For them, doing a full-KYC to open a virtual wallet each and every time will likely be a major hindrance for clean trade," mentioned the founder of a Mumbai-based payments company.
Digital payment companies fear new rules may cripple industry
![Digital payment companies fear new rules may cripple industry]()
Reviewed by Kailash
on
October 22, 2017
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